Ofcom has introduced new rules requiring telecoms providers to set out any in-contract price rises clearly in pounds and pence before customers sign up to a contract. This will prohibit providers from including inflation-linked or percentage-based price rise terms in new contracts. The new rules and guidance will take effect on 17 January 2025.

Last year, CAP published guidance on the presentation of mid-contract price increases in telecoms ads, following a public consultation. This guidance was developed in a context in which contracts including inflation-linked price increases were permitted by Ofcom. It included measures advertisers should take to ensure information about inflation-linked price increases was clear and up front, to avoid misleading consumers. Now that Ofcom have confirmed that these types of increases will be prohibited, CAP will continue to engage with Ofcom to better understand how this new policy intersects with our guidance.

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